A data room is a type of digital or physical storage area where companies store relevant information for due diligence. In the process of due diligence, investors want to see that all of a startup’s documentation is organized and current. This will give them the impression that there are no hidden surprises. A poorly-designed dataroom can negatively impact an investor’s valuation. A good data room will make investors look at a startup with more positive.
The best virtual data space comes with many features that make it easier for the users to utilize them. These include customizable watermarks with granular permissions settings and audit reports that track user activity. The most advanced data rooms provide full-text search optical character recognition (OCR) and filtering capabilities to find specific documents or a range of files. In addition a secure VPN connection allows remote access to the data room.
The ability to support a variety of devices and browsers is the most crucial feature. This allows users to work and browse information at any time anywhere, any virtual data room time.
You can also speed up the deal process by using data rooms. They are a central place to store all documents, streamline document review and approval and coordinate guided signing and much more. Download a free PandaDoc eSignature demo today and learn more!
